White House showing signs of willingness to negotiate
Mr. Lange, the EU is negotiating with the US on tariffs. What can the EU offer?
The EU can offer to help reduce the US trade deficit, for example by purchasing soy and gas from the US. It has already put a „zero-for-zero“ offer on the table, meaning the elimination of all tariffs on goods. It can also ease market access for US companies through mutual standards, certifications, and the recognition of conformity assessments. What matters above all is that the EU presents a clear and unified position.
And where are the red lines? What would you advise against?
The Americans want significant changes to European legislation that they perceive as trade barriers. But the rules concerning food safety, chemicals, or digital services, which protect EU citizens and consumers, must not be compromised. These are non-negotiable. And it’s a good thing the European Commission shares that view and has made it very clear.
The UK has reached a deal with the US, and China has made progress in its negotiations. What is the EU doing wrong?
First, there are now signals from the White House showing a genuine willingness to negotiate. And second, regarding the UK and China: we still have to see what actually comes out of those deals. A lot remains to be clarified.
Are you concerned that the EU market could be flooded with Chinese goods that can no longer be sold in the US?
That depends heavily on how US-China negotiations unfold. Take, for example, the removal of the 800 dollar duty-free threshold. Let’s see whether the US sticks with that or reintroduces it. If China does end up diverting large volumes of goods to Europe, the EU has options to react, such as implementing safeguards in the form of tariffs.
The EU is now accelerating negotiations with other trade partners. Which deals are particularly important?
The agreement with the Mercosur countries is crucial. The ratification phase will begin the month after next. The EU is also negotiating intensively with Indonesia. There is hope for progress this summer. That would be significant, as Indonesia is the key economy in Southeast Asia. I’m also optimistic about a deal with Australia. The remaining differences are not insurmountable.
